Open the contractor you want to convert from your People list, then click "Convert to employee" in the actions at the top of their profile.
On the "Confirm personal information" step, review the first name, last name, email, and date of birth carried over from the contractor. Edit anything that's out of date, then click "Continue".
On the "Add residence" step, choose "Use existing contractor address" to keep the address on file, or "Add residence" to enter a new home address. If an address can't be verified, apply the suggested correction when prompted.
On the "Start date" step, pick the employee start date. Converting within the same calendar year means this person gets both a 1099 (as a contractor) and a W-2 (as an employee) for that year.
On the "Choose a primary workplace" step, select the primary workplace this employee reports to. If your company has no workplaces set up yet, you can add one later from the employee's profile.
On the "Compensation" step, choose "Add compensation info" to set default pay — a compensation type (Hourly, Annually, or Per piece), an amount, an optional rate name, and workweek hours — or choose "Skip" to add it later. Default pay prefills every payroll so you don't re-enter it.
On the "Assign to a pay schedule" step, keep the contractor's current schedule or pick a different one — or choose "No pay schedule". Assigning or changing a schedule blocks autopay for the affected pay period, so you'll approve that payroll manually.
On the "Review" step, check the summary, then click "Convert to employee" to finish.
If the person doesn't already have a login, an "Invite to app" step appears — send a sign-in invitation now, or skip it and invite them later from the People page.
Once converted, the person becomes an employee. Open their employee record to finish any remaining setup, such as tax withholdings and payment details.
Note: "Convert to employee" shows only for individual contractors who aren't already an employee. If the contractor is set up as a business, or already has an employee record, the option won't appear.